This article is part of a series sponsored by IAT Insurance Group.
In the latest episode of What’s Brewing, Ben McDonald, IAT’s vice president of over and surplus contract binding underwriting, and Claire Rinker, senior underwriter, discusses market conditions, industry trends, and how to grow the underwriting industry.
Listen to the plot here: The combination of over and redundant | What is brewing
Below, we explore the highlights from their discussion.
Market Trends: Changing Landscapes
Over the past few years, the excess surplus (E&S) market has changed significantly. Inflation affects responsibility, construction costs and labor costs, leading to a persistent tough market for various sectors. While some areas, such as properties exposed to hurricanes, are showing signs of moderation, others, such as those in California where wildfires are prone to, still show high fluctuations.
Embrace prediction analysis
Technology plays a greater role in underwriting than ever before. IAT has implemented a new risk analysis tool that can more accurately help underwriters and agents with price risks. By leveraging predictive models that evaluate credit scores, crime rates, and other risk factors, IAT is committed to providing competitive pricing while maintaining profitability.
Disaster Risk: Wildfires and Hurricane Exposure
Underwriting of catastrophic risks requires careful analysis. In Wildfire State, IAT evaluated attributes based on wildfire scores, locations, and historical combustion data. The underwriting team uses satellite imagery and field insights to assess risk. Meanwhile, in areas exposed to hurricanes, advanced modeling tools help determine the appropriate pricing and coverage levels.
Stability and long-term commitment
What makes IAT unique in the contractual binding space? According to Ben and Claire, it is a commitment to underwriting expertise and commitment to becoming a stable long-term market. While some competitors jump into the market, IAT focuses on sustainable underwriting practices that ensure consistency between agents and insureds.
Want to learn more about how IAT navigates today’s dynamic insurance landscape?
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